Estimating anticipated and nonanticipated demand elasticities for cigarettes in Spain

José-Julián Escario and José Alberto Molina

International Advances in Economic Research, 2000, vol. 6, issue 4, 782-793

Abstract: This paper will test whether tobacco consumption generates addiction in Spanish people. If this is the case, can such addiction be explained in the context of rational addiction theory? Elasticities are also obtained in the cases where price variations can be anticipated or, by contrast, where they cannot. The results first reveal the addictive and rational character of Spanish tobacco consumption. With respect to estimated demand elasticities, we find the expected results, namely that the anticipated values are higher than the nonanticipated values and that the long-run effects are also higher than the short-run effects. Copyright International Atlantic Economic Society 2000

Date: 2000
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DOI: 10.1007/BF02295388

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